Paying someone else’s mortgage:
It is said that rent money is dead money but is this really the case. Yes, your rent is likely going towards the Landlords mortgage but there is risks associated owning an investment property and flexibility & savings in being a tenant.
When you are a tenant you have the flexibility of being able to easily relocate if your job or personal circumstances change. If you own your home it is not a quick or easy process to sell and purchase again.
If a major maintenance issue arises, i.e the hot water or air-conditioning systems fail, these can be big ticket repair items, which are not easily budgeted for.
As a tenant you have a fixed cost housing budget, as a Home Owner or Landlord you have the upside of any increase in house prices but you also have the risks associated with home ownership.
General Poor Treatment:
Yes, some Tenants have poor relationships with their Landlord & Agent, but this is the exception not the rule. Like every personal & business relationship there are good and bad ones. As a general rule Agents & Landlords know investing in a good long term tenant is smart investment
A happy long term tenant reduces the costs associated with a vacant property and finding a new tenant. On average, every week a property is vacant equates to a $10 p.w drop rental income over the year. A long term tenant also reduces the wear and tear on a property.
Routine Inspections:
Having an agent inspect your property can be seen as an inconvenience, however Routine Inspections are an important part of managing any property. Without regular inspections it is difficult to plan for maintenance and monitor the condition of a property over time.
It is important to keep a property well maintained and in good repair to maintain a property’s value. Leaving a maintenance issue unresolved can lead to a larger repair bill down the track.
Restrictions on improvements:
As a tenant you may be restricted in what you can change or do to your home. Often you need to ask permission from your Landlord or Agent to install picture hooks or have Foxtel installed. A good Landlord or Agent will work with you to ensure the property feels like your home. Again a happy tenant, who treats the property as their own, is an asset
Maintenance not being done or delayed:
As a tenant you have the right to request maintenance. The RTA basically split the responsibility between landlord and tenant. Maintenance, general wear and tear is the landlord’s responsibility were as damage / user error is the tenant’s responsibility.
It is important to report your maintenance concerns to your Landlord or Agent promptly, as not reporting an issue can result in a larger repair bill. If your Landlord or Agent does not attend to maintenance you should first follow them up and if all else fails, you can consult the RTA for assistance.
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